Morning Preview: May 12, 2023

Early Look

Friday, May 12, 2023









S&P 500










U.S. futures are looking higher, while Treasury bond yields and the U.S. dollar held steady as stocks look to close out the week mixed. The Dow posted its 4th straight loss Thursday and down 8 of last 9 coming into today, but still only down 1% for the week. The S&P 500 index is looking higher for the week given the overnight gains and has remained very resilient over the last few weeks, off only about 4% from its 52-week high of 4,305 hit in the middle of August. A muted reading of inflation over the month of April Thursday, which followed a mixed CPI reading Wednesday suggests price pressures will continue to abate over the coming months, raising views the Fed will “pause” at its next policy meeting and may cut rates in future meetings if inflation continues to decelerate. A modestly better-than-expected first quarter earnings season has added to broader market sentiment, but fears of a U.S. default of its debts ahead of the looming debt ceiling at the end of the month raises concerns. In Asian markets, The Nikkei Index gained 261 points to 29,388, the Shanghai Index fell -37 points to 3,272, and the Hang Seng Index dropped -116 points to 19,627. In Europe, the German DAX is up 82 points to 15,917, while the FTSE 100 rose 28 points to 7,759.


Market Closing Prices Yesterday

·     The S&P 500 Index slipped -7.06 points, or 0.17%, to 4,130.58.

·     The Dow Jones Industrial Average fell -221.29 points, or 0.66%, to 33,309.51.

·     The Nasdaq Composite gained 22.06 points, or 0.18%, to 12,328.51.

·     The Russell 2000 Index declined -14.81 points, or 0.84% to 1,744.71.


Economic Calendar for Today

·     8:30 AM ET             Import Prices M/M for April…est. +0.3%

·     8:30 AM ET             Export Prices M/M for April…est. +0.2%

·     10:00 AM ET           University of Michigan Sentiment, May-P…est. 63.0

·     10:00 AM ET           University of Michigan 1-yr and 5-yr inflation expectations

·     1:00 PM ET              Baker Hughes Weekly rig count data

·     7:30 PM ET              Fed’s Bullard and Jefferson Take Part in Panel Discussion.


Earnings Calendar:

·     Earnings Before the Open: AIRS SPB


Other Key Events:

·     BMO Capital 2023 Real Estate Summit, 5/10-5/12, in New York





















10-Year Note





World News

·     The Federal Reserve will likely need to raise interest rates further and hold them higher for some time if US price pressures don’t cool off and the jobs market shows no sign of slowing, Governor Michelle Bowman said.


Sector News Breakdown


·     Solo Brands (DTC) 11.3M share Secondary priced at $5.25.

·     Spectrum Brands (SPB) Q2 EPS loss (-$0.14) vs. est. (-$0.04) and revs $729M misses $759 estimate: cuts FY23 outlook citing lower first half demand and additional short-term headwinds and cuts FY23 revs to a decline mid-single digits y/y’ vs. prior view of flat y/y.

·     Tesla (TSLA) raises the price of Model X and S by $1,000 and Model Y by $250: Model X to $98,490, raises Model X Plaid to $108,490, Model S to $88,490, Model S Plaid to $108,490, Model Y to $47,490, Model Y Long Range to $50,490, and lastly raises Model Y Performance to $54,490.


Energy, Industrials and Materials

·     BlueBird (BLBD) 2Q adj EPS $0.27 vs est. $0.08 on revs $299.8Mm vs est. $249.5Mm, adj EBITDA $19.8Mm vs est. $10.1Mm; guides net revs to just over $1.1B vs est. $1.018B, adj EBITDA $55-65Mm vs est. $40.6Mm and adj FCF $30-40Mm; reconfirming long-term outlook of profitable growth toward $2B revs and adj EBITDA margins of 12% or $250Mm.



·     Fed Emergency Bank loans rose to $92.4b from $81.1b prior week; the Fed discount-window loans $9.32b in week ended May 10 after $5.35b; the Fed bank term funding loans $83.1b in week ended May 10 after $75.8b.



·     Amylyx Pharmaceuticals (AMLX) 1Q EPS $0.02 vs est. ($0.24) on net product revs $71.4Mm vs est. $58.99Mm, op Inc -$2.05Mm vs est. -$18.8Mm.

·     Catalent (CTLT) has determined that it is unable to file, without unreasonable effort or expense, its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023 on time.

·     Heron Therapeutics (HRTX) 1Q EPS ($0.27) vs est. ($0.20) on revs $29.62Mm vs est. $29.69Mm.

·     SomaLogic (SLGC) 1Q EPS $0.18) vs est. ($0.22) on revs $20.4Mm vs est. $18Mm, adj EBITDA $(36.445)Mm vs est. $(34.78)Mm; guides FY revs $80-84Mm vs est. $81.5Mm.

·     Ventyx Biosciences (VTYX) 1Q EPS ($0.68) vs est. ($0.65), cash & equivalent $376.9Mm end of qtr.

·     Walgreens Boots Alliance (WBA) announces the sale of shares of AmerisourceBergen (ABC) pursuant to variable prepaid forward transactions executed in reliance on Rule 144 for current proceeds of approximately $644 million and, depending on the stock price at the time, potentially additional proceeds at maturity, along with a concurrent share repurchase by AmerisourceBergen of approximately $50 million.


Technology, Media & Telecom

·     8X8 Inc. (EGHT) Q4 EPS $0.11 vs. est. $0.09; Q4 revs $184.5M vs. est. $185.5M; sees FY24 revenue $755M-$763M vs. est. $766.7M; sees FY24 non-GAAP operating margin in the range of 12% to 13%, compared to the prior implied range of 11.5% to 12.5%.

·     Arlo Technologies (ARLO) 1Q adj EPS $0.01 vs est. ($0.05) on revs $111.0Mm vs est. $104.9Mm, adj gr mgn 32.6%, adj gr profit $36.2Mm.

·     Gen Digital (GEN) Q4 adj EPS $0.46 vs. est. $0.44; Q4 revs $948M vs. est. $940.05M; sees Q1 EPS $0.45-$40.47 vs. est. $0.46 and revs $940M-$950M vs. est. $954.1M; Q4 Bookings of $3.4 billion, up 17% in USD and 22% in CC; Q4 operating margin was 54.9%, up 220 bps.

·     IonQ (IONQ) Q1 EPS loss (-$0.14) vs. est. loss (-40.11); Q1 revs $4.3M vs. est. $3.8M; sees Q revenue $4.1M-$4.5M vs. est. $4.3M and FY revs $18.8M-$19.2M vs. est. $18.6M.

·     News Corp (NWSA) Q1 adj EPS $0.09 vs. est. $0.05; Q1 revs fell -1.7% y/y to $2.45B vs. est. $2.38B; expects to achieve at least $160 mln in annualized savings from previously announced headcount reductions, up from prior estimate; Q3 revs segment breakdown: Book Publishing revs $515M, Digital Real-Estate Services revs $363M, Dow Jones revs $529M, News Media revs $563M and Subscription Video Services revs $477M.

·     Ouster Inc. (OUST) 1Q adj EBITDA $(27)Mm vs est. $(52.5)Mm on $17Mm revs vs est. $16.6Mm, ad gr mgn 25%; guides 2Q revs $18-20Mm vs est. $20Mm.

·     Sanmina (SANM) 2Q adj EPS $1.59 vs est. $1.55 on revs $2.32B vs est. $2.25B; guides 3Q revs $2.2-2.3B vs est. $2.231B, adj EPS $1.50-1.60 vs est. $1.51; board authorizes repurchase of additional $200Mm common stock.


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.